Singapore Central Bank (MAS) Focusing on Token Qualities
Singapore central bank, tokens characteristics.
The central bank of the Singapore, Monetary Authority of Singapore (MAS) recently shared that no tokens as of yet approved are those that represent securities. At the Consensus Singapore 2018 Conference, Damien Pang, the head of the MAS’s technology infrastructure office for fintech and innovation expressed that no existing crypto should be subject to securities legislation.
“The MAS does not intend to regulate utility tokens that are used to access certain services. But a payments service bill is expected to be enacted by the end of this year to apply to payment tokens, which have storage and payment values.”
He talked about and explained 2017 published “A Guide to Digital Token Offerings” where tokens are categorized into utility tokens, payments tokens, and securities tokens.
Pang also emphasized that every jurisdiction has its own set of criteria to decide the nature of the token. He further said should the features of a payment or utility token resemble that of securities, it would be regulated as such by the MAS.
However, the aim is not to regulate the technology, “but (its) purpose” as he shared:
“The MAS takes a close look at the characteristics of the tokens, in the past, at the present and in the future, instead of just the technology built on.”
As for clearing stating out the names of tokens as in Bitcoin or Ethereum and if they are securities, Pang has shared that it doesn’t offer an encouraging environment for innovation.
“The moment you start naming names, people take it very literally – these are and those are not. But in fact, there are more than 1000 tokens. Bear in mind, we provide clear guidelines to categorize them.”